Income tax in Andorra is fixed at 10% (0% if the income does not exceed 24000 euros per year). In France the progressive income tax rate varies from 5.5% (income €5 964 — 11 896), 14% (income €11 897 — 26 420), 30% (income €26 421 — 70 830), 41% ( income €70 830 — 150 000), 45% (income €150 001 — 1 000 000), to 49% (income more than €1 mln)
Indirect taxes (VAT) in Andorra are at 4.5%. There are 4 VAT rates in France: 20% — all products and services; 10% — is the average rate that applies to work related to the transformation, improvement and preservation of real estate, as well as repair of residential buildings older than two years. A similar rate applies to the following goods and services: aid services, transportation allowances, agricultural products, certain types of medicines; 5,5% — food, drugs, transport; 2,1% — main medicines.
The tax burden on businesses in Andorra is one of the lowest in Europe. Companies’ profits are taxed at 10% with an opportunity to reduce to 2% (if the relevant requirements are met). Andorra is listed among the 25 best countries in the world for business, according to the International Living Index. French residence means the highest level of corporate profit tax (33.33%) for businesses with a taxable income of more than 75,000 €. Enterprises that have a profit below this amount are taxed at a rate of 28%. In addition, there is a reduced rate of 15% for some companies whose profits are below 38120 euros. And, on the contrary, companies that have superprofits are taxed additional 3.3% of profits
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